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R-808 - 05/14/2002 - TAX - Resolutions Supporting Documentsti n ' -VILLAGE OF OAK BROOK G 4 Village Board Transmittal Memorandum DATE: May 9, 2002 SUBJECT: Resolution Opposing Reductions in State Shared Revenues FROM: Stephen B. Veitch, Village Manage' RECOMMENDATION: That the Village Board adopt the attached resolution opposing a reduction) in the share of the state income tax shared with local governments and elimination of the shared portion of the photoprocessing tax. Within the last few weeks it has become apparent that the resolution of the State of Illinois' budget crisis could involve a reduction in the portion of the state income tax shared with municipalities through the local government distributive fund and elimination of the portion of the photoprocessing tax shared through the fund. The Illifios Municipal League and municipalities across the state are strenuously opposed to these steps on the grounds that local governments have already experienced revenue shortfalls in these and other sources commensurate with those experienced by the state and that to reduce or eluninate these longstanding sharing formulas impacts local governments disproportionately. The impact on the Village of Oak Brook is estimated to be an additional $77,000 annually. The attached resolution would formally register Oak Brook's opposition to these proposals. I recommend its adoption. This matter will appear on the Active Agenda for the Board's May 14 meeting. /sv Attachmej doc e 8. B. 2) At the Village Board meeting of January 27, 1998, the Board approved "A Revised Intergovernmental Agreement Providing for the Establishment of the Salt Creek Greenway Trail and the Performance of Certain Engineering Services" concerning the design and construction of a trail along or in the general vicinity of Salt Creek from the Ned Brown Forest Preserve in northern Cook County, south to DuPage County and connecting with the Centennial Trail of the National Historic Chicago Portage Site. This trail is approximately 25 miles in length and project sponsors include the Forest Preserve District of DuPage County, the Addison Park District, the Village of Addison, the Elmhurst Park District, the Village of Oak Brook, the Village of Lyons, the Forest Preserve District of Cook County, and the Village of Villa Park. The DuPage Forest Preserve District is the lead agency. The Phase I Engineering work is essentially complete (staff is awaiting IDOT's final approval). The next step is to proceed with Phase II Design Engineering. On April 161 2002, the DuPage Forest Preserve approved the first supplemental agreement concerning Phase II Engineering services and is asking each agency to also approve it so that the project may continue. Each agency has a respective share of the costs. Oak Brook's share is $31,185 out of a total $350,775. The Village expects to receive 80% reimbursement as part of the grant process. The 2002 Budget contains $36,000 for this project. Staff is requesting approval of this supplemental agreement through a resolution in order to be consistent with each of the other agencies' actions in the past. Motion by Trustee Miologos, seconded by Trustee Caleel, to pass Resolution 2002- AG -EXI -R -807, "A Resolution Authorizing Execution of a First Supplemental Agreement Between the Village of Oak Brook and the DuPage Forest Preserve District Concerning the Establishment of the Salt Creek Greenway Trail and the Performance of Phase II Engineering Services." ROLL CALL VOTE: Ayes: 4 - Trustees Caleel, Craig, Korin and Miologos. Nays: 0 - None. Absent: 1 - Trustee Savino. Motion carried. 3) SOLUTION 2002 -TX- INCM -R -808 "A RESOLUTION OF THE US 02-TX- INCM -R- VILLAGE OF OAK BROOK, DUPAGE AND COOK COUNTIES, IL PHTOP OC TAX CONCERNING STATE INCOME TAX AND PHOTOPROCESSING TAX SHARED WITH MUNICIPALITIES." VILLAGE OF OAK BROOK Minutes Page 8 of 15 May 14, 2002 8. B. 3) Within the last few weeks it has become apparent that the resolution of the State of Illinois' budget crisis could involve a reduction in the portion of the state income tax shared with municipalities through the local government distributive fund and elimination of the portion of the photoprocessing tax shared through the fund. The Illinois Municipal League and municipalities across the state are strenuously opposed to these steps on the grounds that local governments have already experienced revenue shortfalls in these and other sources commensurate with those experienced by the state and that to reduce or eliminate these longstanding sharing formulas impacts local governments disproportionately. The impact on the Village of Oak Brook is estimated to be an additional $77,000 annually. Staff recommends adoption of a resolution, which would formally register Oak Brook's opposition to these proposals. Motion by Trustee Caleel, seconded by Trustee Craig, to pass Resolution 2002 -TX- INCM -R -808, "A Resolution of the Village of Oak Brook, DuPage and Cook Counties, IL Concerning State Income Tax and Photoprocessing Tax Shared With Municipalities." ROLL CALL VOTE: Ayes: 4 - Trustees Caleel, Craig, Korin and Miologos. Nays: 0 - None. Absent: 1 - Trustee Savino. Motion carried. AWARD OF CONTRACTS: None. NONE . ACCEPTANCE OF ACTUARIAL REPORTS — POLICE & ACT REPTS POL & FIREFIGHTERS' PENSION FUNDS AND APPROVAL OF THE 2002 FIRE TO DDS - VILLAGE CONTRIBUTION RATES TO POLICE & FIREFIGHTERS' PENSION FUNDS An actuarial study of the Police Pension Fund and Firefighters' Pension Fund is performed annually in order to monitor the funding progress of the two funds as well as determining the Village's contribution for the coming year. Since it is in both the Village's interest and the two pension funds' interest that these studies be performed, 50% of the cost of each study is paid for by the Village and 50% is paid for by the respective pension fund. Timothy W. Sharpe, Actuary, once again performed the studies. VILLAGE OF OAK BROOK Minutes Page 9 of 15 May 14, 2002 06 STATE OF ILLINOIS ) SS. COUNTIES OF COOK AND DUPAGE ) I, Linda K. Gonnella, do hereby certify that I am the duly elected and acting Village Clerk of the Village of Oak Brook, DuPage and Cook Counties, Illinois. I DO FURTHER CERTIFY that on May 14, 2002 the corporate authorities of the above municipality passed and approved Resolution 2002- TX- INCM --R -808 A RESOLUTION OF THE VILLAGE.OF'OAK BROOK, DU PAGE AND COOK COUNTIES, IL CONCERNING STATE INCOME TAX AND PHOTOPROCESSING TAX SHARED WITH MUNICIPALITIES I DO FURTHER CERTIFY that the original documents, of which the annexed copy is a true copy, is entrusted to my care for safekeeping and I am the keeper of the same. I DO FURTHER CERTIFY that I am the keeper of the records, journals, entries, resolutions, ordinances and documents of the said Village of Oak Brook, DuPage and Cook Counties, Illinois. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of the Village of Oak Brook this 15thday of May 920 02 . Liri a K. Gonnella, CMC Village Clerk Village of Oak Brook DuPage and Cook Counties, IL RESOLUTION 2002 -TX- INCM -R- 808 A RESOLUTION OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, IL CONCERNING STATE INCOME TAX AND PHOTOPROCESSING TAX SHARED WITH MUNICIPALITIES WHEREAS, the Local Share of the Illinois Income Tax is one -tenth or 0.3% of the 3% individual income tax and 0.48% of the 4.8% regular corporate income tax; and WHEREAS, a change to one - eleventh will reduce each and every Illinois municipality's revenue by approximately $6.75 per person, per year; and WHEREAS, the $84 million per year received by the State of Illinois from the local share of state income tax will not significantly solve or ameliorate a state budgetary crisis; and WHEREAS, municipalities, since the adoption of sales tax reform in 1986, have received money from the state sales tax raised from photoprocessing; and WHEREAS, that photoprocessing revenue is distributed to municipalities at the rate of approximately $2.10 per person, per year or about $26 million per year; and WHEREAS, municipalities have suffered just as severe a loss of income tax revenue from the faltering economy and the recently enacted Federal Economic Stimulus Package; and WHEREAS, municipalities have already been required to make budgetary cuts to accommodate lowered revenues from income tax, sales tax, motor fuel tax and utility tax; and WHEREAS, proposals before the Illinois General Assembly have suggested that the local one - tenth share of the state income tax be reduced to a one - eleventh share and that the photoprocessing tax sharing with municipalities be abolished; and WHEREAS, those changes would reduce local revenues by a total of $8.85 per person, per year for a total loss of $110 million per year statewide or approximately $77,000 to the Village of Oak Brook; and WHEREAS, Illinois municipal officials feel the General Assembly, by taking this action, would be reneging on a longstanding, mutually beneficial partnership with Illinois municipalities. NOW, THEREFORE, BE IT RESOLVED THAT THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS assembled at its regular meeting of May 14, 2002, urges the Illinois General Assembly and Governor George Ryan to oppose efforts to reduce the local government share of the Illinois Income Tax to less than the current one -tenth of net receipts and to abolish the sharing of State Photoprocessing Tax with municipalities. Resolution 2002 -TX- INCM -R- 808 State Income Tax and Photo - processing Tax Shared with Municipalities, Page 2 PASSED AND APPROVED this 14th day of May, 2002 by the President and Board of Trustees of the Village of Oak Brook, DuPage and Cook Counties, Illinois, according to a roll call vote as follows: Ayes: Trustees Gal eel r Craig, Knri n anti Vi nl ngns Nays: None Absent: Trustee Savino Abstain: None rti OF 04.,� y �oiic4iif Village Pr d nt�).-4, VILLAGE OF OAK BROOK DATE: May 9, 2002 Village Board Transmittal Memorandum SUBJECT: Resolution Opposing Reductions in State Shared Revenues FROM: Stephen B. Veitch, Village Manage . RECOMMENDATION: That the Village Board adopt the attached resolution opposing a reduction in the share of the state income tax shared with local governments and elimination of the shared portion of the photoprocessing tax. Within the last few weeks it has become apparent that the resolution of the State of Illinois' budget crisis could involve a reduction in the portion of the state income tax shared with municipalities through the local government distributive fund and elimination of the portion of the photoprocessing tax shared through the fund. The Illi ois Municipal League and municipalities across the state are strenuously opposed to these steps on the grounds that local governments have already experienced revenue shortfalls in these and other sources commensurate with those experienced by the state and that to reduce or eliminate these longstanding sharing formulas impacts local governments disproportionately. The impact on the Village of Oak Brook is estimated to be an additional $77,000 annually. The attached resolution would formally register Oak Brook's opposition to these proposals. I recommend its adoption. This matter will appear on the Active Agenda for the Board's May 14 meeting. /sv Attachment IncomeTaxResMem.doc f VILLAGE OF OAK BROOK 1200 OAK BROOK ROAD OAK BROOK, ILLINOIS 60523 -2255 PHONE: 630.990.3000 FAX: 630.990.0876 WEBSITE: www.oak- brook.org FACSIMILE TRANSMISSION TO: DATE: 5/15/2002 2:02 PM COMPANY/ FAX NO: DEPARTMENT: FROM: Stephen B. Veitch (630.990.5730 Number of pages in this transmission (including this page): RE: Opposition to Reduction in the share of state income tax shared with local governments and elimination of the shared portion of the photoprocessing tax. Attached is a Certified copy of Resolution R -808, concerning the State Income Tax and Photoprocessing Tax shared with municipalities that was passed unanimously by the Village Board at its regular Board of Trustees meeting on May 14, 2002. This resolution formally registers our opposition of the State's proposed reduction in the portion of the state income tax shared with municipalities through the local government distributive fund and elimination of the portion of the photoprocessing tax shared through the fund. Local governments across the state have already experienced revenue shortfall in these and other sources commensurate with those experienced by the state. To reduce or eliminate these longstanding sharing formulas would impact municipalities disproportionately. Thank you for considering our position in this most important matter.